Lesotho PAYE Calculator 2026/2027
Calculate estimated PAYE and take-home pay from manually entered gross salary, approved pension deductions and the current tax-year bands. TaxEase shows the working and source assumptions for planning.
How Lesotho PAYE is calculated
TaxEase starts with the gross employment income entered by the user, models the approved pension deduction shown in the calculator, applies the progressive PAYE bands to chargeable income, and then subtracts the monthly non-refundable tax credit. Medical aid and other commitments are shown separately as post-tax cash deductions unless the law and the taxpayer's facts support a different treatment.
2026/2027 PAYE bands and tax credit
Under the RSL 2026/2027 employment-income guide, chargeable income from M1.00 up to M6,480 per month is taxed at 20%. The excess above M6,480 per month is taxed at 30%. The monthly non-refundable tax credit is M1,020.
The RSL guide also gives a practical M5,100 example: M5,100 x 20% = M1,020, less the M1,020 credit, leaving M0 PAYE in that example.
Worked example: M10,000 monthly gross income
- First band: M6,480 x 20% = M1,296.
- Excess: M10,000 - M6,480 = M3,520.
- Excess tax: M3,520 x 30% = M1,056.
- Gross tax: M1,296 + M1,056 = M2,352.
- Less monthly credit: M2,352 - M1,020 = M1,332 estimated PAYE.
This follows the worked example published in the RSL employment-income guide. Your result can differ where approved deductions, pension contributions, benefits or other inputs apply.
What to enter in the calculator
- Enter gross salary manually; it is never automatically inferred from another field.
- Add basic salary, allowances, overtime and any annual bonus that applies.
- Enter the employee pension percentage and choose whether it is based on basic or gross income.
- Review the 20% pension deduction cap and any excess shown in the result.
- Keep medical aid, loans and other commitments separate from PAYE unless their legal treatment has been verified.
Frequently asked questions
What is the Lesotho PAYE rate for 2026/2027?
The 2026/2027 RSL employment-income guide applies 20% to chargeable income up to M6,480 per month and 30% to the excess above M6,480.
What is the Lesotho monthly tax credit for 2026/2027?
The RSL employment-income guide states a monthly non-refundable tax credit of M1,020.
Does the TaxEase PAYE result replace an official assessment?
No. TaxEase provides an independent planning estimate and does not file returns, issue assessments or replace an employer payroll review or professional tax advice.
Can an approved pension contribution reduce PAYE?
TaxEase models an approved pension deduction subject to the stated deduction cap and assumptions. Confirm the fund, eligibility and final deduction treatment with Revenue Services Lesotho.
Official sources: RSL Guide on Taxation of Employment Income 2026/2027 ยท RSL 2026/2027 income tax structure
Reviewed 20 August 2026. TaxEase does not file returns or issue official assessments. Confirm current requirements with Revenue Services Lesotho before filing or relying on a tax position.